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Utility costs20. August 2024

Understanding and checking the utility bill

What tenants should pay attention to in a utility bill – from permissible items and deadlines to your rights in the event of discrepancies.

Understanding and checking the utility bill

Once a year it arrives: the utility bill. For many tenants in Switzerland, it is a closed book. Additional payments cause annoyance, credits bring joy – but what exactly is the landlord allowed to charge? And how do you check whether the statement is correct?

In this article, we explain step by step how a utility bill is structured, which costs are permissible and what you can do if something does not seem right.

What are utility costs?

Utility costs – also called operating costs – are costs incurred by the landlord in connection with the operation and maintenance of the property. The tenancy agreement specifies which utility costs the tenant must bear in addition to the net rent. Only what is agreed in the tenancy agreement may be charged.

Typical utility costs include:

  • Heating and hot water
  • Caretaker services and stairwell cleaning
  • Communal electricity (stairwell, laundry room, lift)
  • Water supply and waste water
  • Waste disposal charges
  • Garden maintenance
  • Insurance premiums (building insurance)
  • Management costs (only if contractually agreed)

Advance payments or flat rate – the difference

The tenancy agreement specifies whether utility costs are paid as advance payments or as a flat rate. The difference is crucial:

With advance payments, you make monthly prepayments. At the end of the billing period, a settlement is made: if you have paid too much, you receive a refund. If you have paid too little, you must make an additional payment. The landlord is obliged to send you a detailed statement.

With a flat rate, you pay a fixed amount each month. No settlement is made – regardless of whether the actual costs were higher or lower. Flat-rate arrangements are simpler for tenants but carry the risk of overpaying in the long run.

What may be charged – and what may not?

Not every expense incurred by the landlord may be passed on to tenants. The general rule is: only costs that are expressly listed as utility costs in the tenancy agreement may be charged. The following items are typically not allocable:

  • Repairs and maintenance costs on the building (see also What to do about rental defects?)
  • The landlord’s mortgage interest
  • Provisions for future renovations
  • Management costs, unless explicitly agreed in the tenancy agreement
  • Costs for vacancies (empty apartments may not be allocated to the remaining tenants)

How to check your utility bill

Take the time to check your statement carefully. Pay attention to the following points:

  • Billing period: does the period correspond to the actual duration of the tenancy? If you moved in or out during the period, costs must be calculated on a pro rata basis.
  • Contractually agreed items: compare the items charged with the tenancy agreement. Only utility costs listed there are permissible.
  • Allocation key: how are costs distributed among the tenants? Common methods include allocation by floor area, number of persons or consumption. The key must be transparent.
  • Comparison with the previous year: significant deviations from the previous year should be questioned. A doubling of heating costs without an apparent reason may indicate an error.
  • Advance payments: check whether your advance payments have been correctly taken into account.

Your rights as a tenant

As a tenant, you have the right to inspect the documents on which the utility bill is based. The landlord must present the original receipts to you upon request. This right of inspection is enshrined in Swiss tenancy law and cannot be contractually excluded.

If you find an error in the statement or disagree with an item, you should inform the landlord in writing and request a correction or explanation. Set a reasonable deadline of 30 days.

What to do if the statement is incorrect

If the landlord does not respond to your complaint or refuses a correction, you can contact the competent conciliation authority. Learn more about your rights and obligations as a tenant in our guide. The procedure is free of charge in most cantons and provides a low-threshold way to resolve disputes.

Important: do not pay an additional amount under protest; instead, note in the accompanying letter that you are contesting the statement. This safeguards your claims.

Observe deadlines

The landlord must send the utility bill within a reasonable period – usually within six to twelve months after the end of the billing period. If the statement arrives too late, the tenant may in certain circumstances refuse to make the additional payment.

Conversely, tenants should also act promptly: contest the statement as soon as possible – ideally within 30 days of receipt – to preserve your rights.

Utility costs20. August 2024
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